Listing ID: 67680
A combination of professional and knowledgeable support staff and compassionate, trained, and carefully vetted care providers deliver quality care to seniors and the disabled living in private homes, retirement communities, and independent and assisted living communities. The franchise provides part-time and full-time home care services including companionship, nutrition planning, meal preparation, light housekeeping, safety and security, and personal hygiene and mobility assistance. Alzheimer’s, dementia, diabetes, Parkinson’s care are among areas of specialization and opportunity.
- Asking Price: $1,500,000
- Cash Flow: $470,000
- Gross Revenue: $2,766,125
- EBITDA: $390,000
- FF&E: $29,000
- Inventory: $7,500
- Inventory Included: Yes
- Established: 2003
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,735
- Lot Size:N/A
- Total Number of Employees:126
- Furniture, Fixtures and Equipment:N/A
Option to purchase Rent: $5,721/month About 5K square feet
The seller will provide training and transition assistance on the local level regarding the staff, local market, and office management. Seller is available for onsite support for up to 2 weeks and is available for call / email support for up to 3 months. The Franchisor offers telephone support 24/7. There are also numerous ways in which franchisees support each other through sharing of best practices and advice on issues being faced. One week training program for new owners provided by the Franchisor
Owners want to retire
The In-Home Senior Care Franchises industry is benefiting from a growing number of aging baby boomers. Over the five years to 2019, the number of adults older than 65 is expected to grow an annualized 3.6% to 55.0 million people. As people live longer due to advancements in medicine and technology, a growing number of seniors are looking to stay in their own homes and maintain independence for as long as possible. Franchise establishments that provide medical and non-medical in-home services enable seniors to do just that. The high cost of nursing homes and assisted living accommodations, coupled with the escalating healthcare costs associated with hospital stays, has also continued to drive growth in demand for industry services. The Patient Protection and Affordable Care Act (PPACA) of 2010 includes a list of changes to nursing services for seniors and the disabled, among them encouraging the transition from nursing home services to at-home managed care. As a result, industry revenue is expected to grow at an annualized rate of 8.0% to $10.9 billion over the five years to 2019, including an increase of 6.8% in 2019 alone. Average profit margins are expected to represent 15.4% of revenue in 2019. The franchise model has gained traction to capture the business of assisting senior citizens who want to remain in their homes. There are now more than 60 brands selling home healthcare franchises, which entice franchisees with moderate initial investment requirements and strong business support in key areas such as marketing and advertising. Instead of having to build reputations from the ground up as non-franchise businesses do, franchise owners benefit from the clout and name recognition of strong national brands. The number of enterprises is expected to grow at an annualized rate of 10.8% to 9,726 companies over the five years to 2019. Although industry growth slowed slightly during the economic downturn, in-home senior care franchising has remained strong. This growth is expected to accelerate over the next five years, with demographic changes expected to continue unabated. Over the five years to 2024, the number of adults aged 65 and older is expected to grow to 63.4 million people, accelerating industry growth. Additionally, solidification of changes implemented under the PPACA will shift demand toward at-home care, and an improving economy will better enable seniors to pay for non-medical services. Over the next five years, revenue is forecast to grow at an annualized rate of 6.4% to $15.0 billion.
The Franchisor's expansion into home-based medical care will increase revenue potential. Hospitals now have a financial incentive to reduce readmission and will encourage patients to receive care from agencies such as this company. The incredible Baby Boomer/age wave phenomenon coming makes it likely that Medicare will have to include Home Care payments as a benefit to prevent hospitalization, a new source of revenue. New preferred partnerships with Home Health Agencies and Hospice. Increased perceived value and visibility of home care as better options than assisted living as witnessed during the pandemic. Aging population. New Veteran Administration tools created by the franchise to increase Aid & Attendance access. Potential future tax credits for home care.
This Business Is An Established Franchise
The venture was founded in 2003, making the business 19 years old.
The transaction will include inventory valued at $7,500, which is included in the requested price.
The company has 126 employees and is situated in a building with approx. square footage of 4,735 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell companies. Nonetheless, the true reason vs the one they say to you may be 2 totally different things. For instance, they may claim "I have too many various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competition, recent decrease in profits, or an array of various other reasons. This is why it is really crucial that you not depend absolutely on a seller's word, but rather, utilize the seller's answer in conjunction with your general due diligence. This will repaint an extra realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies finance loans so as to cover points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that earnings margins are too small. Many companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be satisfied or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract new clients? Often times, companies have repeat clients, which form the core of their daily profits. Particular factors such as new competition growing up around the area, roadway building, as well as personnel turnover can impact repeat customers as well as negatively influence future profits. One essential thing to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the higher the chance to develop a returning consumer base. A last thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? How might the neighborhood mean family earnings impact future earnings potential?